Automated VAT Adjustment for Payments with PPD - Workaround

Transcription

1 Automated VAT Adjustment for Payments with PPD - Workaround Localization: GB, relevant for companies based in UK only Public

2 Introduction In this document, you can find detailed description of proposed workarounds that you can use after the new legislation comes into effect (April 1, 2015) in the following cases: If you do not upgrade to a patch level of SAP Business One that enables automated VAT adjustment for payments with cash discount (PPD) If you upgrade to a patch level of SAP Business One that enables automated VAT adjustment for payments with cash discount (PPD) after the deadline (April 1, 2015), that includes options: If you upgrade to a patch level of SAP Business One that enables automated VAT adjustment for payments with cash discount (PPD), and there are no open invoices with PPD in the system If you upgrade to a patch level of SAP Business One that enables automated VAT adjustment for payments with cash discount (PPD), and there are open invoices with PPD in the system 2

3 Workaround Option 1 (1/7) You have not upgraded to a patch level that contains automated solution 1. Set up a new payment term to capture the existing payment term information which has the cash discount. 2. In the existing payment term remove the value in the Cash Discount Name field. 3

4 Workaround Option 1 (2/7) You have not upgraded to a patch level that contains automated solution 3. Change the existing payment term on the BP master data to Cash Basis. 4. Set up a new UDF on the BP master data and include the new payment term there. 4

5 Workaround Option 1 (3/7) You have not upgraded to a patch level that contains automated solution 5. Set up a new UDF on the invoice and create a formatted search to pull new payment term from the BP master data. 5

6 Workaround Option 1 (4/7) You have not upgraded to a patch level that contains automated solution 6. Adopt a new layout which includes information from the new payment term and relevant PPD information. 6

7 Workaround Option 1 (5/7) You have not upgraded to a patch level that contains automated solution 7. Process payments (for existing invoices prior to April 1) which will have the discount taken due to payment terms by using one of the following options: a) Applying manually the discount percentage in the Cash Discount % field. 7

8 Workaround Option 1 (6/7) You have not upgraded to a patch level that contains automated solution b) Applying only the received value in the payment against the invoice and creating a credit note (next slide). 8

9 Workaround Option 1 (7/7) You have not upgraded to a patch level that contains automated solution Note: In this case you need to create a Service type credit note for the discount amount with a VAT code that is zero percent (potentially create a new VAT code for this and manually reconcile the invoice and the credit note. 9

10 Workaround Option 2 You have upgraded to a patch level that contains automated solution No open invoices exist 1. Replace the existing payment term on the BP master data with the new payment term. EXCEPTION: If you have not used option 1 prior to April 1 and you have upgraded on April 1 with no open invoices, then no further action is required. 10

11 Workaround Option 3 You have upgraded to a patch level that contains automated solution Open invoices exist 1. Set up a new payment term to capture the existing payment term information which has the settlement discount. 2. In the existing payment term remove the value in the Cash Discount Name field. 3. Replace the existing payment term on the BP master data with the new payment term. 4. Process payments (for existing invoices prior to April 1) which will have the discount taken due to payment terms by applying only the received value in the payment against the invoice. Note: In this case you need to create credit note of the a Service type for the discount amount with a VAT code that is zero percent (potentially create a new VAT code for this), and then manually reconcile the invoice and the credit note. 11

12 Options - Summary April 1, 2015 Upgrade has NOT been applied: - Use option 1 you must request permission form HMRC. Upgrade has NOT been applied: - You should start to use option 1 from April 1, 2015 at the latest. Upgrade has been applied and not all invoices created before April 1, 2015 are closed prior to the upgrade: - Use option 3. Upgrade has not been applied and you are not using option 1: - No specific workarounds need to be considered before April 1, Upgrade has been applied and all invoices created before April 1, 2015 are closed prior to the upgrade - Use option 2. * Note the exception under option 2 as mentioned previously. 12

13 For more information, refer to your local SAP representative SAP SE or an SAP affiliate company. All rights reserved.

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